• Latin American Nations Are Optimistic about Foreign Oil

Latin American Nations Are Optimistic about Foreign Oil

According to the report of Colombian Observer on August 25, Latin American countries show optimism about attracting foreign investment and external technology to develop oil industry. Many countries have modified energy bill in order to attract multinational oil companies to invest. Meanwhile, Latin American countries are also trying to ensure the dominance of governments in cross-border cooperation.
On August 10, the Mexican government announced the end of the 76-year-long monopoly of oil nationalization, allowing foreign capital entering into local oil market. The Mexican government expected that the energy reform would bring $ 50 billion of foreign investment. In addition, advanced technology brought by multinational companies would greatly enhance the exploitation of deepwater oil fields in Mexico Gulf.
Aguilar, the academician of Mexico Monterrey Institute of Technology, explained to reporter, "The emphasis of opening oil market is on allowing foreign purchase and exploitation of oil fields. For foreign investors, they are mainly facing the tax burden. If they pay taxes in accordance with the rate of Mexican state oil company Pemex, it will be a big budget." Although Mexico has open its oil markets to multinational oil companies, the government ensures that more than 80% of domestic crude oil is under its own control.
Oil-rich Brazil has a lot of deep-sea oil wells, thus many foreign investors are interested in cooperation with the Brazilian national oil company Petrobras. However, the Brazilian government regulations that the state must occupy at least 30% stake in each cross-border cooperation project. Some experts believe that if the government involves too much in the oil industry, large multinational oil companies will weaken the interest in oil exploration in Brazil.
Argentina oil project Vaca Muerta has been successful in attracting American Chevron, Exxon, France Total, Britain - Dutch Shell. The same as Mexico and Brazil, Argentine state-owned oil company YPF takes 70% control of mining rights.
Latin American Nations Are Optimistic about Foreign Oil


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